12 May 2004 Media Statement

104 reasons why the government is good for business

Government departments have made 104 reductions in compliance requirements for business since 2001, Minister for Small Business John Tamihere says.

A report by the Ministry of Economic Development shows that government departments have saved businesses time and money when complying with government regulations in 104 instances, Mr Tamihere says.

In 75 cases, saving in time for businesses was achieved, and in 29 cases, financial savings were achieved.

The leading area for compliance cost reductions was Companies and Securities compliance (33 reductions), followed by tax (19 reductions), Hazardous Substances and New Organisms (14), Statistics NZ surveys (10), Resource Management Act (7), ACC (4), Transport (2), employment relations (1) and "other" compliance (14).

Mr Tamihere said it was heartening to see solid progress being made on easing the compliance burden for business.

"Compliance remains a concern for businesses, particularly small businesses, and it is great to see that significant inroads are being made so businesses can spend less time dealing with red tape, and more time doing business."

[Compliance costs are defined as any costs, both direct (taxes and fees) and indirect (paperwork and time costs) that a business faces in complying with government regulations. For the full list of 104 compliance reductions see www.beehive.govt/tamihere]

Compliance Cost Reductions Data

Companies and Securities

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

May 2002 MED Companies Office Time Companies Office Register became an electronic register. Service available 24 by 7 accessible anywhere and at any time.

June 2002 MED Companies Office Time Launched a public search service enabling a company name search using WAP technology. Service available 24 by 7 - accessible anywhere and at any time.

Oct 2002 MED Companies Office Time Enhanced online annual return service. Clearer expectations resulting in a marked decrease in the number of incomplete returns and therefore saving time and cost.

Decrease the risk of removing companies who were unaware that they didn't fully complete the return process - saving time and cost.

Feb 2003 MED Companies Office Time Online change of company name Service available 24x7 - accessible anywhere and at any time

Dec 2003 MED Companies Office Time Launched Fast Track Filing System Resulted in a reduction of processing times from 3-5 days to 24 hours.

Offers flexible payment options.

July

2004 MED Financial Business registries

The business registries rate reductions are due to the decision to distribute the surplus operating expenditure back to users of the services. Reduction in Companies office and Personal Property Security Registry (PPSR) electronic fees Paper based fees remain unchanged.

Feb 2002 MED Companies Office Time Release of Company Keys - enables company details to be easily and securely maintained online at any time of the day Service available 24 by 7 - accessible anywhere and at any time.

May 2002 Companies Office, MED Time Electronic Personal Property Security Register Service available 24 by 7 - accessible anywhere and at any time.

Sept 2002 MED/MCA Time Establishment of Southern Business Centre in Christchurch:

provides a South Island call centre and

brings all MED services under one roof - Companies Office, Insolvency and Trustees Service, Electrical Workers Licencing Group, Intellectual Property Office of NZ and Ministry of Consumer Affairs.

provides internet access to MED websites A one-stop shop improves service thus saving clients time.

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

Dec

2003 MED Companies Office Financial

Motor Vehicle Dealer Traders Register

The purpose of the Act is to promote and protect the interest of consumers relating to motor vehicle sales.

About 80% of all traders have taken advantage of the online registration option - a significant achievement for a traditionally paper-based business section.

A Trader is an individual or a company.

Website went live months before implementation, providing an interim resource for both traders and consumers, and allowing traders and consumers to become accustomed to using the website. Implementation of the new Motor Vehicle Traders Register (MVTR) upon the introduction of the Motor Vehicle Sales Act 2003 (which replaced the Motor Vehicle Dealers Act 1975) on 15 December 2003 - Reduced costs of registration for Motor Vehicle Traders (now only $583, versus several thousands under previous law), and includes the Motor Vehicle Disputes Tribunal levy.

Financial - No capital requirement to become a trader so more traders can be in business.

Time - Online or on paper applications options - more choice - and applications are only 1 or 2 pages, plus statutory declaration.

Time - Application turnaround time of approximately 48 hours upon receipt of all documents.

Time - Consumers and traders can search the MVTR 24 hours a day, 7 days a week, at no cost.

Time - Consumers can take complaints directly to Motor Vehicle Disputes Tribunal, without having to go through MVDI/Fidelity Fund.

Financial - No compulsory membership in an industry body (MVDI under former Act), so no extra cost attached to registration.

Time - No special warranties in addition to the Consumer Guarantees Act, so compliance is easier.

Time - Free electronic newsletter sent to former LMVDs, industry, other government agencies, and other subscribers upon request to keep everyone informed on progress of the MVTR, aspects of the Act, and other MED initiatives (eg Small Business Days). Newsletter now folded into Business Update (still free).

Time - Motor Vehicle window card Supplier Information Notice (SIN) template is available free at www.consumeraffairs.govt.nz/businessinfo along with other compliance advice.

Time - Consumers or traders can use the complaint form posted on the website to make a formal complaint directly to the NEU about a trader who is breaching the Act (had to go through MVDI under former Act).

Time - Free trader training on the MVTR and the Act occurred before implementation to facilitate registration and awareness of obligations on the date of implementation. Nationwide training jointly held by MED, MCA, and Commerce Commission (for the new SIN (window card)).

Time - If traders select registration on paper, all forms can be filled out on the website (in PDF format) then printed, or can be printed then filled out.

Financial - Traders are not restricted to selling from a specified premise.

Financial - Salespersons not required to be registered.

Sept 2002 Electrical Workers Licensing Group (EWLG) Time Online re-licensing Re-licensing service available 24 by 7 - accessible anywhere and at any time.

Nov 2003 EWLG Time Online Electrical Workers Register Register available 24 by 7 - accessible anywhere and at any time.

Date Dept / Entity Cost Type Issue/Comment Action Reduction

May 2004 EWLG Time Online keyless transaction agreement with employers who have 10+ electrical workers on staff. This enables employers to renew all their staffs' Practising Licenses online and allows a direct debit payment option Allows a number of payment options - cheque, cash or direct debit.

Significantly speeds up the renewal process for employers and staff - savings in time because it can all be done at once.

Much simpler process

April 2002 Intellectual Property Office of New Zealand (IPONZ) Time Renewal of Patents, Trade Marks and Designs online with direct debit/credit card options Renewals can be done at any time and anywhere that suits the client - service available 24 by 7.

Sept 2002 IPONZ Time Online trade mark applications Applications can be made at the clients' convenience - service available 24 by 7.

August 2002 Insolvency and Trustees Service (ITS) Time Filing of Proofs of Debt online Service available 24 by 7 - accessible anywhere and at any time.

Tax

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

2003 IRD Time GST de registration

Easier to comply Administrative improvements for SMEs. It is now possible to de-register for GST over the phone.

2003 IRD Time PAYE Form distribution

Reduction of irritating communication. Administrative improvements for SMEs. Improvements internally so that employers do not continue to receive PAYE forms when they've told us they've ceased employing.

2003 IRD Time FBT registration

Reduction in the cost of compliance Administrative improvements for SMEs. Changes to how and when IRD registers employers and companies for FBT.

2003 IRD Financial Electronic tax returns

Easier to comply Administrative improvements for SMEs. Tax Returns that can be filed via the Internet saving postage and paper based costs.

2003 IRD Time Electronic communications

Easier to comply Administrative improvements for SMEs. Sending and receiving secure correspondence on-line.

2003 IRD Time Online Calculators

Improvements for self calculating tax due. Administrative improvements for SMEs. Calculators on the Internet simplify calculation and IRD agree that if their calculator is used they will stand by the answer given.

2003 IRD Time

GST registration online

Easier to comply Administrative improvements for SMEs. GST registrations on line reducing paper costs and speeding up registration process.

2003 IRD Time Stationery and publication subscriptions online

Easier access to compliance forms and guides. Administrative improvements for SMEs. Subscribe to order stationery and subscribe to publications.

2003 IRD Time Account details online for Students and Tax agents

Easier access to account details. Administrative improvements for SMEs. Enabling students and tax agents to look at their account details on line

2003 IRD Time Enhanced call centre features. Easier to comply. Longer hours, shorter waiting periods, and increased training for staff have led to increased satisfaction levels from all members of the community including SME's and their agents.

2003/04 IRD Time Small business advisory service

Resulting from extensive small business consultation the Small business advisory service was implemented.

In 2002 IRD undertook:

- 15 group discussions in larger centres with customer groups such as GST registrants, larger employers, and small employers

- 30 one-on-one visits to taxpayers in provincial and rural areas by Inland Revenue's small business advisory service staff and senior managers responsible for communicating with, and providing information to taxpayers

- A telephone survey with 2100 SME taxpayers and agents

- A website survey in which any SME taxpayer could take part in.

Small business advisory service implementation Small business advisory service consisting of:

Business Tax Information Service

Provides advice to all types of small and medium

businesses and organisations.

Maori Community Tax Service

Provides advice to Maori small and medium businesses and organisations.

The advisors from both services provide information on:

- how to set up the right systems

- what taxes affect you and how

- what tax returns you need to file

- when you need to send returns and make payments

- what records you need to keep and how to use them

- They can also show you where to find information on their website and what online services are available and how to use them

- The advisors will meet at a place that suits the business

- Bookings to arrange meetings are by phone or online request form on IRD's website

02-03-04 IRD Time Industry partnerships

Working with specific industries to improve compliance. Administrative improvements for SMEs. Industry partnership - initiative designed to improve compliance using a relationship based approach to working with industries in which a significant number of businesses have compliance issues.

Jan 2004 IRD Financial Free postage

Reduction in the cost of compliance. Free postage for business correspondence. Free postage for business correspondence with Inland Revenue. Businesses are be able to free post their payments of GST, PAYE and fringe benefit tax

2003-04 income year. IRD Financial Pooling provisional tax payments

Reduction in the financial cost of compliance. New legislation introduced to allows taxpayers to pool their provisional tax payments. Under the new legislation, these tax payments may be pooled with those of other taxpayers, with the result that underpayments may be offset by overpayments within the same pool. The amendments reduce taxpayers' exposure to use-of-money interest on underpaid tax and increase interest on overpaid tax. This only applies to those that are required to pay provisional tax rather than income tax.

January 2004. IRD Time PAYE intermediaries allowed

Reduction in the cost of compliance. Legislation to allow for PAYE intermediaries.

Allows businesses to concentrate on their business by enabling a business to transfer the responsibilities of administering payroll, PAYE obligations and other source wage deductions to a specialist.

2002 IRD Financial Debt and hardship arrangement extension

Reduction in the financial costs of compliance. Debt and Hardship legislation.

The types of taxes that are eligible to be cancelled, remitted or the subject of an instalment arrangement have been extended from income tax and fringe benefit tax to include all taxes.

2003/4 income year. IRD Financial Use of money threshold raised

Reduction in the financial costs of compliance Use of money Interest threshold adjustment. The residual income tax threshold that must be reached before use of money interest is charged has been increased from $30,000 to $35,000.

2003 IRD Time Stock in hand threshold raised

Reduction in the cost of compliance Trading Stock threshold reduction.

Enterprises which reasonably estimate at the end of the year that they have less than $5,000 worth of trading stock are no longer required to value that stock at the end of an income year, or include any change in the value in their calculation of income.

July

2003 IRD Financial FBT rate reductions

Reduction in the financial costs of compliance FBT rate for low-interest loans reduced. The interest rate used to calculate fringe benefit tax for low-interest, employment-related loans has decreased from 7.74% to 7.33%.

Hazardous Substances

# Date Dept / Entity Cost Type Issue/Comment Action Improvement

03/04 MfE Financial HSNO - Hazardous Substances

Cost of applications to import or manufacture new hazardous substances.

Existing hazardous substances need to be transferred to HSNO.

To enable new substances to be registered through the rapid assessment pathway (a faster and cheaper pathway) they need a reference substance (similar substance).

Existing substances cannot be used as reference substances until they have been "transferred' to HSNO. Implemented the Hazardous Substances and New Organisms (Transitional Provisions and Controls) Amendment Act and completed HSNO Control regulations to enable transfer. This enables transfer of existing hazardous substances to HSNO to proceed.

Completing transfers reduces application costs as transferred substances qualify new but similar substances for rapid assessment.

Applications by the full assessment pathways vary (costs are $3,000, $6,000 or $15,000) depending on the substances characteristics and degree of information known about the substance.

Applications by rapid assessment (available for substances similar to one already approved) cost $500.

100 new substances applications expected per annum. Of these, we expect 95% to be processed by rapid assessment once transfer is complete. We estimate a saving to industry of approximately $0.5M per annum.

03/04 MfE Financial HSNO - Hazardous Substances

Meeting HSNO requirements will require capital works in some instances, training or practice changes in other instances.

Any change to practices which require a production outage to implement are very costly in industries like the dairy industry. Implemented the Hazardous Substances and New Organisms (Transitional Provisions and Controls) Amendment Act and completed HSNO Control regulations to enable smooth transition. Costs of meeting HSNO requirements have been reduced by enabling staged implementation to suit business operating requirements. Labelling and dairy industry are examples.

The legislative changes implemented enable business:

- to agree their compliance plans with ERMA on a basis that suits that industries/businesses needs

- to implement HSNO Controls in timeframes that fit in with their business operating requirements

- to delay or speed up HSNO implementation so long as the business proves to the Authority it manages the risks of the substances used.

March 2004

MfE Financial HSNO - Hazardous Substances

Dual regulation of facilities using substances subject to dangerous goods licensing and HSNO simultaneously. Implemented the Hazardous Substances and New Organisms (Transitional Provisions and Controls) Amendment Act to remove dual regulation. Dual regulation removed - saves industry $2.4m p.a. in Dangerous Goods licence fees.

March 2004

MfE Financial HSNO - Hazardous Substances

Inflexibility of controls resulting in unnecessary costs.

In some instances this would have degraded the commercial viability of some substances. In others it would have lead to increased costs. Implemented the Hazardous Substances and New Organisms (Transitional Provisions and Controls) Amendment Act to enable control variations on the basis of cost-efficacy. The impact is unquantifiable (with an estimated 80,000 existing hazardous substances), but it is very large.

Feb 2004

MfE and ERMA Financial HSNO - Hazardous Substances

Uncertainty for businesses regarding application costs Implement fixed price application costs. This makes it easier for industry to plan and budget than the cost recovery model.

Feb 2004

MfE Financial HSNO - Hazardous Substances

Public good aspect of application processes not reflected in fees. Increase government subsidy of application costs. Government subsidy of application costs increased from approx. 50% to approx 80%. Recognises public good of application.

March 2004

ERMA Time HSNO - Hazardous Substances

Costs associated with understanding HSNO requirements. Established the 0800 ERMA Dangerous Goods line Businesses now has a place to seek free advice about hazardous substances requirements.

March 2004

ERMA Time HSNO - Hazardous Substances

Costs associated with understanding HSNO requirements. ERMA's Dangerous Goods Seminars Educating industry about the regulatory changes. The seminars have been very well attended.

HSNO - New Organisms

# Date Dept or Entity Cost Type Issue/Comment Action Improvement

31 July 2003 MfE Time HSNO - New Organisms

ERMA applications costs not warranted in some research situations. Introduced HSNO (Low-Risk Genetic Modification) Regulations. The regulations define "low-risk" and expanded the scope of research that can be considered by IBSC's (Institutional Biological Safety Committees) rather than been considered by ERMA.

This has streamlined the regulatory requirements relating to the necessary approvals to conduct low-risk genetic research.

30 Oct 2003 MfE Time HSNO - New Organisms

Royal Commission on Genetic Modification government response. MfE acted as lead agency for coordination of the whole of government response to the recommendations of the report released publicly April 2001.

The impacts of the resulting legislative changes to the Hazardous Substances and New Organisms (HSNO) Act 1996, the Medicines Act 1981, the Agricultural Compounds and Veterinary Medicines Act 1997and the Biosecurity Act 1993 are still being assessed. Streamlined process for the approval of medicines and veterinary medicines that are, or contain, new organisms. Allows for delegated approvals with applications made to one agency rather than two as formally required.

Previously both Ministry of Agriculture and Forestry - Agricultural Compounds and Veterinary Medicines Group and ERMA for Veterinary Medicines.

Previously both Ministry of Health (MedSafe) and ERMA for Medicines.

30 Oct 2003 MfE Time HSNO - New Organisms

Research involving new organisms requires an approval from ERMA.

This leads to uncertain outcomes and costs for laboratory researchers.

In "low-risk' situations consideration by ERMA is not warranted and these costs may be avoided. Broader criteria established (in the HSNO Act) for applications able to be approved by IBSCs, including "low-risk" GMO imports via rapid assessment and many large scale fermentations of micro-organisms (now considered "developments"). Streamlining some approval processes by extending the scope of experiments which do not require full ERMA approval.

30 Oct 2003 MfE Financial HSNO - New Organisms

Projects requiring multiple applications to ERMA faced multiples of cost. Provided for "project" based applications for development of GMOs. Reduces costs involved in projects requiring multiple applications to ERMA.

30 Oct 2003 MfE Time HSNO - New Organisms

Due to the range of possible applications for "conditional release', costs incurred (charges, fees etc) for conditional release applications will be set on a case-by-case basis pending identification of appropriate cost structures. New conditional release category introduced. Gives additional flexibility for releases of GMOs, particularly those at an early stage of commercialisation or where restricted use is proposed.

Dec

2003 MfE Financial HSNO - New Organisms

No recognition of the public good aspect of applications. Increase government subsidy of application costs (also noted under hazardous substances). Government subsidy of application costs increased from approx. 50% to approximately 80%. Recognises public good of application.

Statistics Surveys

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

February 2004 SNZ Time Survey requests

Complaints from business about impost on business from Statistics Department surveys. Particularly the compulsory nature of statistical reporting. Increased use of tax data reduces the number of businesses included in SNZ survey. The number of businesses included in the post out of the Annual Frame Updating Survey has reduced by around 23% between 2002 and 2004, from a post out of 121,000 in 2002 to a post out of 110,000 in 2003 and a post out of 93,000 in 2004.

February 2004 SNZ Time Monthly and Annual Frame Update Survey questionnaires Reduction in questionnaire size. Monthly and Annual Frame Update Survey questionnaires have been simplified. The number of pages has been reduced from 22 to a maximum of 2 for most large businesses that operate from multiple locations.

January 2004 SNZ Time Review of Government survey activity Provide leadership in the statistical environment to reduce overlap and unnecessary surveying. Government has endorsed the Top Down Review recommendations that see SNZ registering and analysing the load arising from all the survey activity across the whole of government. Information will be collected about survey selection from Government agencies providing a mechanism for reduced load on business.

October 2003 SNZ Time Closer relationship with IRD Reduction in surveying of small businesses. The use of GST information in place of direct surveying reduced the survey sample for the Monthly Retail Trade by 25%.

August 2003 SNZ Time Closer relationship with IRD Building SNZ's Business Frame. The use of IRD data to collect structure and industry information about new business start-ups has reduced the number of survey questionnaires by 30,000 (a 50% reduction) annually.

Dec

2002 SNZ Time Closer relationship with IRD Reduction in surveying of small businesses. The use of GST information in place of direct surveying reduced the survey sample for the Quarterly Wholesale Trade survey by 36%.

Sept

2001 SNZ Time Closer relationship with IRD Reduction in surveying of small businesses. The use of GST information in place of direct surveying reduced the survey sample for the Quarterly Manufacturing survey by 28%.

July

2001 SNZ Time Businesses statistical reporting obligations Provide clearer information about survey requirements before a survey commences. SNZ's practice is to provide information to businesses about their statistical reporting obligations. To the extent that this is possible, SNZ provides information on how long businesses are expected to remain in the survey sample, what information will be required from respondents, and how the information will be used.

June 2001 SNZ Time Businesses statistical reporting obligations Increased early and ongoing consultation with businesses over survey design. SNZ consults with relevant business representative organisations and with a range of individual businesses, as part of questionnaire development and testing, by providing design information on the web and calling for submissions.

June 2001 SNZ Time Businesses statistical reporting obligations Develop better information programmes and improved liaison with business The focus of SNZ's work in this area has been to communicate with businesses in the way that is most time effective for the business. Individual concerns are handled by phone, rather than by general written material. SNZ makes special efforts to contact respondents who are selected into new or existing surveys.

RMA and related areas

# Date Dept / Entity Cost Type Issue/Comment Action Improvement

Ongoing MfE Time RMA

Lack of consistency with decisions between local authorities and clarity/predictability for applicants. Developing and updating guidance for local authorities, including practices relating to processing resource consents, the notification of consent applications, charging for the processing of applications, and for building relationships with hapu and iwi. The Ministry is also involved in training council consents staff through workshops and the Quality Planning website. Enhances consistency between local authorities and clarity/predictability for applicants. There is a focus on practices that are efficient and transparent, and that therefore reduce costs and delays for resource consent applicants.

August 2003

MfE Time RMA

Lack of consistency in decisions between local authorities and clarity/predictability for applicants. The Resource Management Amendment Act 2003 (RMAA 2003) refined the process standards for consent timeframes which the biennial survey of local authorities reports against. Allows for clearer and more effective monitoring of local authorities and their consent processes. There can be better comparisons made, and areas for improvement highlighted. Local authorities can identify where reductions in delays can be achieved.

Ongoing

MfE Time RMA

Lack of consistency with decisions between local authorities and clarity/predictability for applicants. Development of an accreditation scheme for RMA decision-makers. Develops the capacity of local authorities to deal with applications more efficiently and effectively, thereby reducing delays and uncertainty for applicants.

Ongoing MfE Time RMA

Lack of clarity with National Environmental Standards (NES) causing uncertainty and delay for applicants. Development of a package of National Environmental Standards (NES). The RMAA 2003 clarifies the matters on which NES can be prepared, and the relationship between these and the rules developed by local authorities. Once NES are implemented resource consent applicants will know what is acceptable from the outset, and can therefore make provision for this in the development of their proposal. In this way delays caused by uncertainty can be avoided.

August 2003 MfE Financial RMA

Costs for low impact applications out of proportion with notification costs. The RMAA 2003 contains provisions to allow for the "limited notification' of applications for resource consent where proposals have minor effects. Notification costs are reduced for these types of applications.

August 2003 MfE Time RMA

Lack of transparency and consistency in the charging practices of local authorities for RMA processes. The RMAA 2003 requires local authorities to supply a written estimate for processing costs if requested by an applicant. The Ministry is also developing guidance for local authorities on charging policy and practice. Encourages transparency and consistency in the charging practices of local authorities. Allows applicants to better take account of resource consent processing costs for their projects, and what they could do to reduce them.

2003-2004 MfE Time RMA

The backlog of cases in the Environment Court awaiting a hearing in 2001 was over 3000.

Reduction of delays in the Environment Court was achieved by:

- appointing additional judges to the court.

- Development of a new case management system that allows better prioritisation of cases

- Creating a stand-alone unit for the court with dedicated administrative support. The backlog of cases awaiting a hearing is now below 1500. Those applicants who are involved in cases experience much shorter delays in having their matter resolved. General costs (including opportunity costs) are therefore reduced.

Accident Compensation

# Date Dept / Entity Cost Type Issue/Comment Action Improvement

April 2002 ACC Financial Injury Prevention, Rehabilitation & Compensation Act 2001 Injury Prevention, Rehabilitation & Compensation Act comes into force. Enabling provisions which allowed ACC to collect residual claims levies directly and offer CoverPlus Extra to non-PAYE shareholder employees (see below).

April 2002 ACC Time Injury Prevention, Rehabilitation & Compensation Act 2001

Transfer of claims collection. Collection of residual claims levy transferred from IRD to ACC. collections started July 2002. Businesses no longer need to complete IR68A form when filing tax returns - estimated time savings 15 minutes per year for all businesses (approximately 200,000 employers and 240,000 self-employed).

April 2002 ACC Financial CoverPlus

Previously Non-PAYE shareholder employees were unable to purchase the CoverPlus Extra accident cover product.

This option was only available to people in self-employment.

CoverPlus means there is no need to establish the customer's pre-injury income, which is particularly useful for customers who lack an established record of income, such as new shareholder employees and the newly self-employed. CoverPlus Extra is a product option that allows customers and ACC to agree in advance how much the customer will get in compensation for income/wages lost due to injury. Removal of the need to prove working status prior to the injury directly benefits customers that make an ACC claim on a CoverPlus Extra policy (currently about 1,000 per year). Time saving estimated at 2-3 hours per claim.

The indirect benefit of CoverPlus Extra is certainty on how much compensation that the customer will get in the event of an injury. Currently 21,000 customers have bought the CoverPlus Extra product - 2,000 of these are non-PAYE shareholder employees.

April 2004

ACC Financial Rate decreases

Employer invoicing starts June 2004.

Self-employed invoicing starts August 2004.

The levy rates are determined by the costs of dealing with work injuries. The rates are reviewed each year and are set in regulations.

Customers pay for accident cover from ACC in advance. The amount to pay is based on the customer's payroll if they are an employer or income if they are self-employed, and a levy rate for the industry they operate in. Rate decreases on accident cover for the period 1 April 2004 to 31 March 2005.

Just under 90,000 employers (most of whom employ under 20 staff) and 136,000 self-employed will pay a lower rate for their accident cover in 2003-04 than they did in 2003-04.

Transport Charges

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

March 2002 Land Transport Safety Authority (LTSA) Time Road user Charges (RUC)

Section 21 of the Road User Charges Act 1977 section required all RUC owners to purchase new RUC licences within 1 month of a rate change. RUC rate changes are to occur annually. This requirement caused substantial frustration and compliance costs the previous times RUC was increased. Repealed Section 21 of the Road User Charges Act 1977 (through the Road User Charges Amendment Act 2002). The repeal of Section 21 of the RUC Act 1977 resulted in a considerable saving in time and paperwork costs for RUC licence owners on any future occasion when RUC charges are altered.

Dec

2003 Ministry of Transport (MOT) Financial Civil Aviation Rule Part 19

Previously GPS distance derived information was not allowed to be used during a precision instrument approach. Aircraft owners importing from the US had to install Distance Measuring Equipment to comply with Rule Part 19. Civil Aviation Rule Part 19 was amended last year.

The rule was amended to allow the use of GPS distance derived information during a precision instrument approach. The estimated cost savings are around NZ$10,000 - this is the cost of installing distance measuring equipment to a light aircraft It was estimated that around 20 new light aircraft per year were likely to benefit from this amendment, although this figure varies annually.

Employment Relations

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

Feb

2004 DOL / ERS Financial Online employment agreement generator

The Small Business Advisory Group requested assistance for SMEs to comply with Employment Relations Act. Particularly in the area of contractual requirements. ERS launched an on-line employment agreement generator, to provide guidance to employers and employees on content for the creation of individual employment agreements. The Builder provides examples of clauses drawn from a range of existing employment agreements, indicates which clauses are legally required in all agreements, offers a range of clauses to meet the additional needs of individual workplaces and provides examples of covering letters when offering employment. Assists employers in meeting the requirements of the Employment Relations Act and reduces costs associated with compliance

Other Compliance Costs Delivery Efficiencies

# Date Dept / Entity Cost Type Issue/Comment Action Reduction

11/2003 FRST / TechNZ Time Techlink

Approval of small budget TechLink funds was taking 4 to 6 weeks. SmartStart launched as pilot via eleven regional agents New web based delivery system for TechLINK funds via EDAs as regional agents with local approval of up to $5k within 3 to 4 days.

2004 FRST / NZTE Time FoRST and NZTE have completed a Coordinated Service Delivery (CSD) Agreement.

Providing high quality, qualified referrals. Tech NZ Investment Managers and NZTE Client Managers will work together to deliver a high quality of service to key clients, and qualified referrals to each other. The overall objectives of CSD in 2003/2004 are to:

(a) Coordinate delivery of services to New Zealand companies in order to facilitate business growth and wealth creation;

(b) Promote Technology NZ and NZTE services and schemes to each other's clients where appropriate;

(c) Facilitate full cooperation and information sharing between all business units of FRST and NZTE.

2004 FRST / NZTE Time FoRST and NZTE have completed a Coordinated Service Delivery (CSD) Agreement.

Hotline Services

To utilise the NZTE Hotline.

FRST and NZTE have agreed to share the NZTE Hotline service to provide high quality client referrals (a) provide a centralised point of contact to potential Tech NZ clients

(b) promote Tech NZ services to these companies, and

(c) deliver high quality, qualified referrals to Tech NZ and its agents.

2004 FRST / NZTE Time FoRST and NZTE have completed a Coordinated Service Delivery (CSD) Agreement.

Joint strategy development FRST and NZTE will seek each other's input into strategy development. Key areas of focus include client segmentation and prospecting, Maori development, and targeted sectoral strategy development e.g. biotechnology, ICT, and creative. The overall objectives of CSD in 2003/2004 are to:

(a) Coordinate delivery of services to New Zealand companies in order to facilitate business growth and wealth creation;

(b) Promote Technology NZ and NZTE services and schemes to each other's clients where appropriate;

Facilitate full cooperation and information sharing between all business units of FRST and NZTE

2003 NZTE Time The merger of Trade New Zealand and Industry New Zealand has resulted in improved and integrated service delivery. Creation of NZTE Integrated business capability and internationalization assistance. Delivering a strategic approach to business growth and development. This ranges from basic business training through to expert one-on-one assistance for exporting or high growth companies.

2003 NZTE Time biz.org.nz Portal that saves time on understanding business requirements and provides access to business focused government sites.

2003 NZTE Time Free publications Planning for Success

Foundations for Growth

Growing your business

2003 NZTE Time E-Business Roadmap Business publication and mentoring service to assist businesses with IT implementation. Provides checklists, background information, best practice examples, referral lists of recognised suppliers and a mentoring service.

2003 NZTE Time Enterprise Development Fund Grants for business and entrepreneurs A 50% grant to engage the services of a business mentor, receive training, employ specialised advise and expertise for a specific project.

2003 NZTE Time Enterprise Training Free business training in all aspects of running and managing a business for owners, operators or managers of small and medium businesses, as well as people wanting to start a new business and trustees and managers of Maori-owned assets. Training services for existing businesses.

2003 NZTE Time MarketNewZealand.com A website to showcase approved New Zealand companies products. Provides showcase facility, market intelligence, events information, and export relevant news.

2003 NZTE Time Escalator Assistance for innovative SMEs to access capital for growth. Free advice with capital raising and access to specialist investment brokers for qualifying companies.

2003 NZTE Time Growth Services Fund Grants are available to support high growth potential firms to purchase external advice and expertise, market intelligence and development services.

2003 NZTE Time Investment Ready Seminars and workshops on how to raise capital to start, expand or diversify a business.

ENDS

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